Provides budget support to mitigate macroeconomic crises, with the medium-term objective of protecting social development goals. Projects are identified and approved based on macroeconomic crisis impact and IMF-supported program. The SDL may:
(i) prevent policy reversals or strengthen reforms in social and institutional areas;
(ii) safeguard funding for social programs benefiting the poor;
(iii) support efforts to mitigate the crisis’s impact on vulnerable groups;
(iv) protect infrastructure spending; and (v) improve access to credit for small and medium enterprises.
Examples: Provides additional financing to countries that request IMF support when hit by Balance of Payment, financial or fiscal crises.
Lending rate: SOFR base rate + 1.15% + IDB variable lending spread:
SOFR base rate is USD SOFR daily overnight compounded rate + IDB's funding margin
1.15% additional lending spread
IDB’s Ordinary Capital (OC) lending spread, periodically determined by IDB.
Fees: : Front-end fee: 100 bps; applicable on approved loan amount, and payable within 30 days from loan effectiveness. Commitment Fee: 75 bps; applicable on undisbursed loan amount and starts to accrue 60 days after loan contract signature.
Fixed repayment profile:
Maturity: 7 years from loan contract signature date;
Grace Period: 3 years from loan effectiveness date.
Interest and Currency conversion options are available.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates